These days, everyone wants a bite of the construction apple–and analysts are falling all over themselves to upgrade companies with exposure to commercial spending. Citigroup did it when looking at the industrial space today, and Morgan Stanley is following suit with its look at the machinery space and upgrade of Manitowoc (MTW).
Dan NeilAnalyst Nicole DeBlase and team write:
Seek out Construction exposure and use caution when investing in Ag and Mining -driven names. We now officially classify ourselves as Non-Resi bulls ��we believe 2014e will (finally) be the year of recovery, with increased confidence stemming from leading indicators and the fact that homebuilders are now constructing new communities. Although [consensus] bakes in a mild recovery (~5% Non-Resi growth), once this begins to play out, positive sentiment, stronger incremental margins, and 2015-16e upside should drive [outperformance]. At the same time, we cannot yet identify the demand trough for Ag/ Mining equipment ��although we are probably closer for Mining than for Ag.
Top 5 Chemical Companies To Own In Right Now: Stanley Black & Decker Inc (SWJ)
Stanley Black & Decker Inc., June 4, 1901, is a diversified global provider of power and hand tools, mechanical access solutions (automatic doors, commercial and residential locking systems), electronic security and monitoring systems and products and services for various industrial applications. The Company�� operations are classified into three business segments: Construction & Do-It-Yourself (CDIY), Security, and Industrial. In September 2011, Stanley Black & Decker acquired Niscayah Group AB. In September 2011, the Company acquired Microtec Enterprises, Inc. In January 2011, the Company acquired InfoLogix, Inc. In December 2012, Spectrum Brands Holdings Inc acquired Hardware & Home Improvement Group (HHI) of the Company. In February 2013, the Company completed its acquisition of Infastech.
CDIY
The CDIY segment consists of the professional power tool and accessories business, the consumer power tool business, which includes outdoor products, plumbing (Pfister) and the hand tools, fasteners and storage business. The segment sells its products to professional end users, distributors and retail consumers. The majority of sales are distributed through retailers, including home centers, mass merchants, hardware stores, and retail lumber yards. During the year ended December 31, 2011, annual revenues in the CDIY segment represented 50% of the Company�� total revenues. The professional power tool and accessories business sells professional grade corded and cordless electric power tools and equipment, including drills, impact wrenches and drivers, grinders, saws, routers and sanders. The business also sells power tool accessories, which include drill bits, router bits, abrasives and saw blades.
The consumer power tool business sells corded and cordless power tools sold under the Black & Decker brand, lawn and garden products and home products. Lawn and garden products include hedge trimmers, string trimmers, lawn mowers, edgers and related accessories. Home pro! ducts include hand held vacuums, paint tools and cleaning appliances. The hand tools, fasteners and storage business sells measuring and leveling tools, planes, hammers, demolition tools, knives, saws and chisels. Fastening products include pneumatic tools and fasteners including nail guns, nails, staplers and staples. Storage products include tool boxes, sawhorses and storage units.
Security
The Security segment consists of the electronic security solutions and the mechanical access solutions businesses. Annual revenues in the Security segment represented 26% of the Company�� total revenues in 2011. The electronic security solutions business designs, supplies and installs electronic security systems and provides electronic security services, including alarm monitoring, video surveillance, fire alarm monitoring, systems integration and system maintenance. Purchasers of these systems typically contract for ongoing security systems monitoring and maintenance at the time of initial equipment installation. The electronic security business also sells healthcare solutions, which includes medical carts and cabinets, asset tracking solutions, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products.
The electronic security solutions business sells to consumers, retailers, educational, financial and healthcare institutions, as well as commercial, governmental and industrial customers. Products are sold predominantly on a direct sales basis. The mechanical access solutions business sells and installs automatic doors, residential and commercial hardware, locking mechanisms, electronic keyless entry systems, keying systems, tubular and mortise door locksets. The mechanical access solutions business sells to both residential and commercial customers, with distribution through direct sales, through retailers (including home centers) and, through third party distributors.
Industrial
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The In! dustrial segment consists of the industrial and automotive repair tools, engineered fastening and infrastructure businesses. Annual revenues in the Industrial segment represented 24% of the Company�� total revenues. The industrial and automotive repair business sells hand tools, power tools, and engineered storage solution products. The business sells to industrial customers in a variety of industries and geographies. The products are distributed through third party distributors, as well as a direct sales force. The engineered fastening business primarily sells engineered fasteners designed for specific applications. The product lines include stud welding systems, blind rivets and tools, blind inserts and tools, drawn arc weld studs, engineered plastic fasteners, self-piercing riveting systems and precision nut running systems.
The business sells to customers in the automotive, manufacturing, and aerospace industries, amongst others, and the Company's products are distributed through direct sales forces. The infrastructure business consists of the CRC-Evans business, and the Company�� hydraulics business. The business�� product lines include custom pipe handling machinery, joint welding and coating machinery, weld inspection services and hydraulic tools and accessories. The business sells to the oil and natural gas pipeline industry and other industrial customers. The products and services are primarily distributed through a direct sales force.
Advisors' Opinion:- [By Ben Rooney]
Stanley Black & Decker (SWJ) tumbled roughly 10% after the power tools maker lowered its full-year earnings outlook. The company said it expected "uncertainty created by the U.S. government's sequestration and shutdown" to hurt business and consumer spending.
Top Machinery Companies To Own In Right Now: Buhler Industries Inc (BIIAF.PK)
Buhler Industries Inc. is a manufacturer of a range of agricultural equipment marketed throughout North America under three primary brand names Versatile, Allied, and Farm King. The Company�� principal products are tractors, self-propelled and pull-type sprayers, frontend loaders, grain augers, snow blowers, tillers, finishing mowers, feed processing equipment, seeding and tillage equipment and hay and forage equipment. The Company�� factories include the Winnipeg (Clarence) factory, the Morden, Manitoba factory, the Winnipeg (Regent) factory, the Bradley Steel Processors��factory, the Fargo factory, the Salem factory, the Willmar factory and the Vegreville factory. The Company�� subsidiaries include John Buhler Inc., Progressive Manufacturing Ltd., Amarillo Service & Supply Inc., Haskett Properties Inc., Buhler Versatile Inc, Haskett Investments Ltd., Buhler Finance Inc. and Buhler Ezee-On, Inc. Advisors' Opinion:- [By Seth Barkett]
Buhler Industries Inc. (BIIAF.PK) is headquartered in Winnipeg, Manitoba, Canada. The company was established in 1932 as an agricultural equipment manufacturer. It was purchased by John Buhler in 1969 and in 2007, Combine Factory Rostselmash Ltd. acquired 80% of the company's stock. Through steady expansion, new products and distribution channels, and acquisitions, Buhler has experienced impressive growth. With seven manufacturing plants across Canada and the United States as well as a great collection of brands like Farm King, Allied, Inland, and Versatile, this vertically-integrated manufacturer is an excellent way to invest in the global agricultural boom.
Top Machinery Companies To Own In Right Now: Lincoln Electric Holdings Inc (LECO)
Lincoln Electric Holdings, Inc., incorporated in 1906, is a manufacturer of welding, cutting and brazing products. Welding products include arc welding power sources, wire feeding systems, robotic welding packages, fume extraction equipment, consumable electrodes and fluxes. The Company's product offering also includes computer numeric controlled (CNC) plasma and oxy-fuel cutting systems and regulators and torches used in oxy-fuel welding, cutting and brazing. The Company operates in five segments: North America Welding, Europe Welding, Asia Pacific Welding, South America Welding and The Harris Products Group. On July 29, 2011, the Company acquired Techalloy Company, Inc. and certain assets of its parent company, Central Wire Industries Ltd. On July 29, 2011, the Company acquired Applied Robotics, Inc. (doing business as Torchmate) (Torchmate). On January 31, 2011, the Company acquired SSCO Manufacturing, Inc. (doing business as Arc Products) (Arc Products). On March 11, 2011, the Company completed the acquisition of OOO Severstal-metiz: welding consumables (Severstal). In March 2012, the Company acquired Weartech International, Inc. In May 2012, the Company acquired Wayne Trail Technologies, Inc., a manufacturer of automated systems and tooling, serving a range of applications in the metal processing market. In November 2012, ITT Corp sold its shape cutting product lines, including the Burny and Kaliburn brands to the Company. In January 2013, the Company acquired Tennessee Rand, Inc.
The North America Welding segment includes welding operations in the United States, Canada and Mexico. The Europe Welding segment includes welding operations in Europe, Russia and Africa. The other two welding segments include welding operations in Asia Pacific and South America, respectively. The Harris Products Group includes the Company's global cutting, soldering and brazing businesses as well as the retail business in the United States. The arc welding power sources and wire feeding systems man! ufactured by the Company range in technology from basic units used for light manufacturing and maintenance to robotic applications for high volume production welding and fabrication. Three primary types of arc welding electrodes are produced: coated manual or stick electrodes; solid electrodes produced in coil, reel or drum forms for continuous feeding in mechanized welding, and cored electrodes produced in coil form for continuous feeding in mechanized welding.
Advisors' Opinion:- [By Seth Jayson]
Lincoln Electric Holdings (Nasdaq: LECO ) is expected to report Q1 earnings on April 23. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Lincoln Electric Holdings's revenues will grow 1.1% and EPS will grow 2.6%. - [By Seth Jayson]
Lincoln Electric Holdings (Nasdaq: LECO ) is expected to report Q2 earnings on July 29. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Lincoln Electric Holdings's revenues will expand 1.8% and EPS will expand 9.9%.
Top Machinery Companies To Own In Right Now: Giga-tronics Inc (GIGA)
Giga-tronics Incorporated (Giga-tronics), incorporated on March 5, 1980, includes the operations of the Giga-tronics Division and Microsource Inc. (Microsource), a wholly owned subsidiary. Giga-tronics Division designs, manufactures and markets a line of test and measurement equipment used in the development, test and maintenance of wireless communications products and systems, flight navigational equipment, electronic defense systems and automatic testing systems. These products are used primarily in the design, production, repair and maintenance of commercial telecommunications, radar, and electronic warfare equipment. The Company manufactures products used in test, measurement and control. The Company has two segments: Giga-tronics Division and Microsource. In April 2013, it completed the sale of its product line known as SCPM to Teradyne, Inc.
Giga-tronics
The Giga-tronics Division produces signal sources, generators and sweepers, and power measurement instruments for use in the microwave and radio frequency (RF) range (10 kilohertz (kHz) to 50 gigahertz (GHz)). Within each product line are a number of different models and options allowing customers to select frequency range and specialized capabilities, features and functions. The end-user markets for these products can be divided into three segments: commercial telecommunications, radar and electronic warfare. These instruments are used in the design, production, repair and maintenance and calibration of other manufacturers' products, from discrete components to complex systems.
The Giga-tronics Division also produces switch modules and interface adapters that operates with a bandwidth from direct current (DC) to optical frequencies. These switch modules may be incorporated within its customers' automated test equipment. The end-user markets for these products are primarily related to defense, aeronautics, communications, satellite and electronic warfare, commercial aviation and semiconductors.
The Microsource segment develops and manufactures a broad line of yttrium, iron, garnet (YIG) tuned oscillators, filters and microwave synthesizers, which are used by its customers in operational applications and in manufacturing a variety of microwave instruments or devices.
Giga-tronics competes with Agilent, Anritsu, EADS, Aeroflex and Rohde & Schwarz.
Advisors' Opinion:- [By Monica Gerson]
Giga-tronics (NASDAQ: GIGA) dropped 14.84% to $1.32. Giga-tronics' trailing-twelve-month profit margin is -30.58%.
MER Telemanagement Solutions (NASDAQ: MTSL) dropped 14.62% to $2.09 after the company terminated MVNE solution provider agreement with SBC Communications.
Top Machinery Companies To Own In Right Now: MSC Industrial Direct Co Inc (MSM)
MSC Industrial Direct Co., Inc. (MSC), incorporated on October 25, 1995, is direct marketers and distributors of a range of metalworking and maintenance, repair and operations (MRO) products to customers throughout the United States. The Company operates primarily in the United States, with customers in all 50 states, through a network of five customer fulfillment centers (four customer fulfillment centers are located within the United States and one is located in the United Kingdom and 106 branch offices (104 branches are located within the United States, one is located in the United Kingdom and the other is located in Mexico). The Company offers approximately 600,000 stock-keeping units (SKUs) through its master catalogs, weekly, monthly and quarterly specialty and promotional catalogs, brochures and the Internet, including its Websites, mscdirect.com, mscmetalworking.com and use-enco.com (MSC Websites). In April 2013, the Company announced that it has completed the acquisition of the North American distribution business (BDNA or the Business) of Barnes Group Inc.
The Company's customers include a range of purchasers of industrial supply products, from individual machine shops to Fortune 1000 companies, to government agencies, such as the General Services Administration (GSA) and the Department of Defense. The Company uses its database of companies and contacts, and the Company also purchases information on prospective customers in the form of databases, mailing lists, and email lists to target the distribution of these various publications and other marketing vehicles to specific individuals within an organization whose purchasing history or other criteria suggest receptiveness to specific publication titles and promotions. The Company also provides electronic ordering capabilities (EDI and XML) to support its customers' purchase order processing.
The Company's products represent a range of MRO products that include cutting tools; measuring instruments; tooling component! s; metalworking products; fasteners; flat stock; raw materials; abrasives; machinery hand and power tools; safety and janitorial supplies; plumbing supplies; materials handling products; power transmission components; and electrical supplies. The Company provides product information and ordering capabilities on the Internet. The Company also maintains a hardware and software platform in support of its VMI program, which allows customers to integrate scanner-accumulated orders directly into its Sales Order Entry system.
Advisors' Opinion:- [By Demitrios Kalogeropoulos]
Meanwhile, stocks on the move this morning include Constellation Brands (NYSE: STZ ) and MSC Industrial (NYSE: MSM ) , which both reported quarterly earnings results before the opening bell.�
- [By Ben Levisohn]
Barclays’ Scott Davis and team believe it might be, and for evidence they look at�3M (MMM), Emerson Electric (EMR), Rockwell Automation (ROK), and MSC Industrial Direct (MSM). They write:
- [By Garrett Cook]
MSC Industrial Direct Co (NYSE: MSM) was down, falling 4.79 percent to $88.91 after the company reported Q3 earnings of $1.06 per share on revenue of $720.50 million. The company also issued a weak Q4 earnings outlook.
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